In a report published Monday, BMO Capital Markets reiterated its Outperform rating on Starbucks Corporation (NASDAQ: SBUX), and raised its price target from $56.00 to $60.00.

BMO Capital noted, “We liked the sales acceleration in August (particularly in the US) and the 165 bp improvement in consolidated EBIT margin (to 15.4%, which was ~50 bp better than our forecast). We were particularly impressed with the 21.4% margin achieved in the Americas (up 200 bp yr/yr and 140 bp better than our forecast) and the ability to maintain 30%-plus margins in the CPG segment despite heavy capital investment to support future growth. On the surface, the over 300 bp EBIT margin declines in EMEA (a 2.3% loss) and CAP (still a healthy 32.5%) were disappointing. However, ex-items, the EMEA margin was +5.0%, meaningfully better than previous trend. And, new unit opening expenses related to accelerated company-owned China growth accounted for most of the margin pressure in the CAP segment. Ultimately, we liked the EPS beat and increased guidance, reflecting accelerated global growth prospects.”